Quantum Leap: IonQ teams with Emergence Quantum on hardware in Australia

Welcome to the latest edition of “Quantum Leap” where The Fly decodes news and activity in the quantum computing space.

AUSTRALIA PACT: IonQ (IONQ) announced a strategic collaboration with Emergence Quantum, an Australian research and development company focused on quantum hardware innovation. The company said this initiative builds on IonQ’s momentum in Australia and reinforces its commitment to advancing quantum innovation through strategic global partnerships. As part of the collaboration, IonQ and Emergence Quantum will expand on existing advances in ion trap technology by co-developing next-generation electronics and materials. This includes the design and simulation of application-specific integrated circuits for qubit control. The teams will also work to reduce hardware complexity while scaling system capacity. Additionally, they will explore new materials and deposition techniques to enhance ion trap performance.

CRYPTOCURRENCY INVESTMENT FUND: Sealsq (LAES) announced a strategic move to strengthen its position in the blockchain and post-quantum space. The company is establishing a cryptocurrency investment fund with a commitment of up to $30M to invest in digital assets as part of its cryptocurrency treasury strategy. This strategic allocation will directly support Sealsq’s ongoing post-quantum cryptography initiatives, reinforcing its mission of enabling secure, decentralized infrastructures that are resilient to emerging quantum threats.

QUANTUM OPTIMIZATION SURVEY: D-Wave Quantum (QBTS) announced the results of a new study that highlights the potential for quantum optimization to create value across industries. According to the study, 46% of surveyed business leaders whose company has implemented quantum optimization or plans to do so within the next two years expect a return on investment of between $1M and $5M, while 27% predict a return of more than $5M in the first 12 months. The findings are detailed in a new report by D-Wave in collaboration with Wakefield Research. In May, Wakefield Research surveyed 400 business leaders from select countries in North America, Europe and Asia Pacific, the majority of whom are familiar with quantum computing and who make decisions about optimization technologies. The company said, “A majority of the business leaders surveyed believe that they have reached the limit of the benefits they can achieve through optimization solutions running on classical computers. Against that backdrop, many are starting to explore whether quantum technologies can help. 53% are planning to build quantum computing into their workflows and 27% are considering doing so, indicating a growing recognition of quantum computing’s real-world business value. Close to a quarter are seeing quantum make a significant impact for those who have adopted it, while another 50% anticipate it will be disruptive for their industry.”

NEW LEADERSHIP: JPMorgan (JPM) has overhauled the leadership of its internal research group responsible for quantum computing and other forms of advanced technology, CNBC’s Hugh Son reported. According to a person briefed on the matter, Marco Pistoia, the former IBM (IBM) inventor who became head of JPMorgan’s applied research group in 2020, recently left the bank, while an employee memo sent Monday shows that the bank has hired Rob Otter, State Street’s (STT) global head of digital technology and quantum computing, to replace Pistoia. According to the article, quantum computing has the potential for huge advances over traditional computing and is expected to have applications in finance, drug development and materials science, among other fields.

DEEPTECH CENTER OF EXCELLENCE: WISeKey (WKEY) and its subsidiary, Sealsq, announced that an initiative launched several years ago to establish LLG4IRir.com a Cross-Border Deeptech Center of Excellence is now being formally activated, following the agreement between Spain and the United Kingdom on Gibraltar’s post-Brexit border status. Strategically located near Gibraltar Airport, this center will act as a shared technological and industrial hub bridging La Linea de la Concepcion and Gibraltar. It aims to provide a collaborative platform for companies working in advanced technologies including artificial intelligence, quantum computing, the Internet of Things, space, cybersecurity and semiconductors.

ANALYST COMMENTARY: B. Riley raised the firm’s price target on Rigetti Computing (RGTI) to $19 from $15 and keeps a Buy rating on the shares. Additionally, the firm increased its price target on D-Wave Quantum to $22 from $20 and keeps a Buy rating on the shares. The firm upped price targets in quantum computing as part of a Q2 preview. For D-Wave, B.Riley believes management, commercial pipeline and Advantage2 adoption updates are in focus. For Rigetti, the firm thinks key issues relate to qubit module-based scalability three times current levels to 100+ by year-end, partner-funded system level advances and error correction progress where the company has partnered with private UK-based Riverlane.